- Gold is over the support of $4,200, which creates good buyer interest and may push the price up to the middle range resistance near the level of $4,300.
- Further strength above $4,200 will provide a direction to $4,380, which is close to the upper limit of the current trading span.
- The sharp declines in the recent past are all contained meaning that it could be reversing to the mean and short-term recovery of the market as the momentum turns in favour of buyers.
Gold (XAU/USD) is testing the important $4,200 support level associated with prior demand zones having previously triggered rebounds in the past. Current price action suggests possible upside momentum if price holds above this support level at $4,200.
Support Holds Near $4,200
Gold’s 1-hour chart shows the market approaching the lower boundary of the recent trading range around $4,200. Historical data indicates this zone has consistently acted as a strong demand base. Sellers have shown reduced strength near $4,217–$4,200, signaling possible defensive buying.
According to Ali _charts, “If gold holds $4,200 as support, a rebound to $4,300 or even $4,380 could follow.” This tweet reflects the market’s focus on defending the support level. Price structure suggests a potential “V-shaped” recovery, where buyers may step in aggressively.
Momentum indicators imply the recent drop has been contained within a short-term range. Sharp declines often precede mean reversion when demand enters the market, which could support a rebound toward higher levels.
Rebound Targets and Market Structure
If $4,200 holds, the first recovery target is $4,300, aligning with mid-range resistance from prior consolidations. This level could act as an initial zone for profit-taking by traders.
The second target stands at $4,380, representing the upper boundary of the current trading range. This area often serves as a liquidity zone where larger market participants may adjust positions. A bounce toward this level would signal a short-term recovery in price action.
A move back below $4,200 would likely open lower supports near $4,170, and draw additional defensive settlements into the market focus. Traders are eyeing this point for a potential shift in short-term trend and future buying reaction.
For now, the market’s direction largely depends on the defense of the $4,200 support. Holding this zone could allow gold to regain upward momentum and challenge the $4,300–$4,380 range efficiently.
